DUNZO

CASE
STUDY
BHARGAV REDDY GOPIREDDY
www.linkedin.com/in/bhargavreddyg
bhargav.gopireddy@gmail.com
 • Dunzo is a 24x7 delivery app that delivers anything to your
doorstep instantly, with Dunzo daily as it's prime offering

• Dunzo daily is an all in one online grocery shopping app

that gets groceries delivered in just 19minutes. It offers
grocery delivery of the freshest fruits, Vegetables and
household items delivered at doorstep.

About
Available in Bangalore, Funding &
Chennai, Pune, Mumbai, Financials
Delhi, Gurgaon, Noida

Dunzo
$700.1M in
and Hyderabad
funding over
18 rounds
Competitors
 • The Objective of this case study is to
come up with ways to get young couples
and families with kids to engage more with
the Dunzo Daily platform and as a result,
increase the Average Order Value by 30-

Problem
40%.
• Devise some product strategies/features

Statement
or growth campaigns that will help Dunzo
increase its Average Order Value.
 • Average Order Value(AOV) refers to the
average amount of money each customer

What is •
spends per transaction with your application
To calculate the company’s average order

Average value, simply divide total revenue by the

number of orders.

Order • Average Order Value is determined with the

help of sales per order and not sales per

Value(AOV) customer.
 Current Average Order Value Goal

Rs 200[Based on User Increase AOV by 30-40%

Interviews& Research] [Rs 260-Rs 280]​

Problem
Breakdown

Ankur
41 years
Working Professional
Lives in Bangalore
Married and has a kid who is 7
years old
Background
Shops for a family of 5
people(He, His wife, His
Father, His Mother and Kid)
and also for his wife's
parents who live in Mysore
User Persona-1
Shopping Process
• Does grocery shopping around once a
month where he and his dad go together to
the local Kirana store and place order and
store sends items home. This is for planned
needs. Ex-10kg of Atta, a bag of rice etc
• For Weekly purchases like fruits and
Vegetables either he or his dad go and bring
them from the local stores
• For unplanned purchases, he orders if his
kid is crying and to tame him buys packed
food items or if his wife needs some items
in the middle of the week. He also checks
with all the other family members if they
need something and adds those items to
the cart
• Sometimes his wife's parents tell him to
order for them in that case he asks what
they want and orders for them
Motivations
• Likes to order packaged food from
quick grocery delivery apps to
tame his kid down
• Wants quick delivery of groceries if
his wife is preparing something and
some item is not available
• Places order through quick grocery
delivery apps for his wife's parents
if they are not able to go out and get
Pain Points
• He finds it very painful to go
through all the sections and
categories of items to find the item
he wants even for the ones he
orders frequently through instant
grocery delivery apps
• Finds it difficult to ask every family
member what they want before
ordering items and misses some
items in the process
 User Persona-2
Shopping Process
• Does grocery shopping around once a
month where he goes to DMart for all the
planned purchases
• Once a week he goes to star Bazar to buy
fruits and vegetables as it's near to his place
and he gets them fresh and prices are cheap
Nithin • If an emergency comes in, guests come in,
friends come in and they are cooking
29 years something and some item is not there he
orders through quick grocery delivery apps
Working Professional • He orders things that stay fresh only for 2
days like buttermilk, curd, milk, ice cream,
Lives in Bangalore eggs etc through instant grocery delivery
apps and orders them every 3rd or 4th day
Young Married
Background
Shops for a family of 2
people(He and His wife) .
Motivations
• If an emergency comes in, guests come
in, or friends come in he wants to achieve
delivery without stepping outside
• Orders things that stay for 2 days or so
and likes to consume them fresh(Milk,
Buttermilk, curd, Ice cream, Eggs)
• Likes to experiment with cooking various
dishes on weekends so orders exclusive
items that he might not need on
weekdays through quick grocery delivery
apps
Pain Points
• He and his wife are both working
professionals so they are very busy and
don't get time to go out and buy any
groceries, or food items on weekdays.
• He cooks different dishes on weekends
and finds it difficult to search all
ingredients individually and then add
them
• Forgets to order some items and there
is no option to add an item
immediately and have to place another
order which is incurring delivery costs
again
 Solution #1 -Showing
customer's Frequently
Purchased Items on Home
Screen
• Problem Addressed-Customers finding it very painful to go through all
the sections and categories of items to find the item he wants even for
the ones he orders frequently through instant grocery delivery apps
• Solution I came up with for this is I added a section on the Home
screen of the dunzo daily app named "Your frequently bought items"
where all the items the user would buy on a regular basis would be
shown along with similar categories of items. This way he can easily add
items he orders frequently and spend time exploring other items and
add other items easily. Thus increasing AOV
Solution #2-
Nudging users to
add more units of
same Item
• Problem Addressed-Users add very less
quantity of items because of which AOV is
less
• Solution I came up with is as soon as users
click on add for low ticket value items whose
individual value is less than ₹50, a pop-up
screen would appear with prices for 1 unit, 2
units, 3 units and so on till 6 units and the
one which would cross ₹50 mark would be
recommended as most popular and
selected as default. The user can add more
items if he wants and select Add to Cart.
This would increase the Average Order Value
Solution #3-Having
Frequently Bought Together
Section in Checkout Page
• Problem Addressed-Users add very less quantity of
items because of which AOV is less
• Solution I came up with for this is, on the checkout
page the user would be displayed with frequently
bought-together items based on the items he added
to the cart. This way user gets to know that people
buy these along with the items he added and would
get tempted to add the other items and thus
increasing the Average Order Value
Solution #4-Recipes
with Option to add all
ingredients to Cart
• Problem Addressed-Customers who cook and
try different recipes have to look for the recipe
ingredients and have to add all of them manually.
They could miss some items or are not able to
find them. Because of this, there is friction.
• Solution I came up with for this is a Recipes page
with all recipes and their preparation listed.
Customers can add all the ingredients needed to
prepare the dish with a single click on "Add all
ingredients to Cart". They can view the recipe by
clicking on "Preparation". Every day there would be
one recipe listed as Recipe of the day and the
ingredients needed to prepare it would have 10%
that day
Solution #5-Share Cart link
to Relatives, Friends and
Family to let them add
items to Cart
• Problem Addressed-Users have to manually ask each family
member what they want and then add them to the cart which has
a lot of friction and some items could be missed from ordering
• Solution I came up with is a share option using which customers
can share their cart through a link with their family members,
relatives and friends.
• Using that link individual family members can add items they need
and a common order can be placed increasing AOV
• It can be used to place an order for someone else who is living
away by simply letting them add items they need to your cart and
then an order can be placed
• It can also be used to place a common order with Friends
Solution #5-
Share cart link
to add items to
Cart to
Relatives,
Friends and
Family(Contd…)
Solution #6-Allowing
Adding items after placing
an order for 2 minutes
• Problem Addressed-Users might forget to buy
something and would have to place an order again or
will have to cancel the existing order and place an
order again
• Solution I came up with for this is to give an option to
users to add more items with no additional delivery
cost for the next 2 minutes after placing an order
• This way users can quickly add any items they forget
and get them all delivered at the same time
• This increases AOV and reduces unnecessary delivery
costs for Dunzo
 Prioritization
Solution Showing Nudging Users to Having Recipes with Share Cart link Allowing
Customer's add more units of frequently Option to add to Relatives, Adding items
Frequently same item if bought together all ingredients Friends and after placing
Criteria Purchased individual item items on to Cart Family to let an order for 2
Items on Home value is less than Checkout page them add items minutes
Screen ₹50 to Cart

High Impact in increasing 3 3 4 3 5 2

AOV(HI)
[1-5]

Ease of adding more items 4 3 4 4 5 2

to cart and quick check
out(E)
[1-5]

Technology Effort required 3 2 3 4 5 2

to build(TE)

[1-5]

Score[(HI*E)/TE] 4 4.5 5.3 3 5 2

Priority 4️⃣ 3️⃣ 1️⃣ 5️⃣ 2️⃣ 6️⃣

 N O R T H S TA R M E T R I C
Average Order Value

L1 METRICS
• Revenue
• Average Basket Size[Tracks the average
number of items sold per transaction]
• The average item price in the
basket[Tracks the average cost of units

Success placed in the basket]​

L2 METRICS(SOLUTION SPECIFIC)
Metrics • Number of Items added from Frequently
bought together items in checkout
• Number of items added through shared
cart links
Thank
You
PREPARED BY:
Bhargav Reddy Gopireddy

www.linkedin.com/in/bhargavreddyg
bhargav.gopireddy@gmail.com